Advance estimates show the US economy contracted at an annualised rate of 0.3% in Q1 2025 –unwelcome news following President Trump’s 100-day milestone yesterday.
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The contraction was driven primarily by a surge in imports, which rose over 40% on the quarter ahead of the President’s 2 April tariff announcement.
Consumer spending growth, long the engine of the US post-pandemic recovery, also eased to its weakest level in almost two years and is likely to remain subdued as tariff-driven price pressures mount.
Cebr forecasts US GDP growth to fall to 1.4% in 2025, down from 2.8% in 2024, signalling a reversal in economic momentum.
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